Explain, how or why the commodity (say bottled water) market can be considered as a good example of perfect competitive market?
Also, explain why is the long run market supply curve horizontal in long run in this kind of market?
How does a competitive firm determine the quantity that maximizes profit?
When might a competitive firm shutdown in the short run and exit the market in the long run?
Moreover, explain why perfect competitive markets are regarded as the best market structure for the society?
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